Ten Year Review of University Inc.

Running the University, he [President Bruininks] has observed, is remarkably similar to running a large, for-profit corporation, however different the end products may be.

(See p. 2 of the 2003 U of M Annual Report entitled Minding the Business of the University.)

Fiscal Yr	Long Term Debt	Operating Expenses	Costs of Admin	Tuition & Fees	State Approps
2011	1,145,419	2,886,024	193,997*	634,042	623,300
2010	956,364	2,900,389	234,308	576,303	651,350
2009	953,372	2,902,268	228,337	590,648	707,806
2008	824,753	2,741,009	196,686	547,874	743,987
2007	796,200	2,532,176	137,982	519,791	645,619
2006	632,947	2,366,018	125,690	494,999	616,445
2005	666,951	2,201,238	108,902	463,417	573,392
2004	664,954	2,098,030	116,481	407,631	577,648
2003	775,598	2,117,739	118,340	348,675	642,711
2002	719,273	2,000,156	103,656	293,127	684,693

(Numbers in thousands of dollars)

Source:  U of M Annual Reports

*  In 2011 the cost of administration decreased $24.5 million due to reduced royalty payments to inventors.  See p. 12 of the 2011 report.

There are trends that are clear from even a cursory review--substantial increases in long term debt, operating expenses and costs of administration together with skyrocketing tuition that has more than offset the reduction in state appropriations (by a wide margin). 

The day of reckoning is approaching:

The University has a limited capacity to absorb additional debt and operating costs from new capital projects.

See p.68 of the March 9, 2012 Board of Regents report on the Six Year Capital Plan.

For more on the emergence of the modern corporate university see The Cost of "Top Talent" Part III  and University Inc. Part II.

 

Michael W. McNabb

University of Minnesota B.A. 1971; J.D. 1974

University of Minnesota Alumni Association life member